Sports Betting Addiction Lawsuits Overview

The expansion of legalized online gambling has allowed companies like FanDuel, DraftKings, BetMGM, Caesars and others to rapidly grow through mobile apps that offer 24/7 access to sports betting. What was once confined to casinos is now available in the palm of a hand, with few restrictions, minimal age verification, and little oversight to prevent financial harm.

These platforms have specifically targeted younger users, relying on social media marketing through apps like TikTok, Instagram, and Snapchat to promote so-called “risk-free” bets, limited-time bonuses, and gamified features that mimic mobile games. This is a deliberate strategy, designed to encourage repetitive use, impulsive betting, and prolonged engagement, particularly among college students and young adults.

Making matters worse, several universities have signed profit-sharing agreements with these betting companies, giving them direct access to campus communities. In many cases, promotional emails were sent to students, including those under 21, and the sportsbooks paid universities based on how many students registered and placed bets. These institutional partnerships opened the door for gambling companies to embed themselves into college life, normalizing high-risk behavior at a time when many students are managing finances independently for the first time.

As a result, sports betting addiction lawsuits are now being pursued against both online gambling platforms and the universities that facilitated access. These claims allege that young adults were placed at unnecessary risk through coordinated marketing efforts and institutional endorsements that prioritized profit over student welfare.

Who Qualifies for a Sports Betting Lawsuit?

Sports betting addiction lawsuits are being investigated for individuals between the ages of 18 and 30 who have incurred more than $10,000 in gambling-related losses after using online platforms such as:

• FanDuel
• DraftKings
• BetMGM
• Caesars
• ESPN Bet
• Bet365
• Fanatics Sportsbook
• PointsBet
• Barstool Sportsbook
• Hard Rock Bet

Lawyers are actively investigating sports betting addiction lawsuits on behalf of young adults and college students nationwide who developed compulsive gambling behavior and suffered financial harm that may have been preventable.

To determine if you or a loved one may qualify for a sports betting lawsuit, submit information for review by a lawyer. Your case will be evaluated based on your use of betting apps, financial losses, and signs of addiction. There are no fees or expenses unless a settlement or recovery is obtained.

Sports Betting Apps Are Designed To Create Addiction

Unlike traditional gambling venues, sports betting apps are built for constant access and instant gratification. Users can download an app, deposit money, and place bets in under five minutes, often without meaningful age verification, spending limits, or emotional checkpoints. However, it is not just the accessibility that poses a risk, it’s how the platforms are intentionally designed to encourage compulsive, high-frequency betting.

These apps borrow heavily from the psychology of addiction, using behavioral triggers commonly found in casinos and mobile gaming. The goal isn’t just to attract users, but to keep them betting longer, betting more, and returning often, even after substantial losses. These platforms are built to exploit impulse control, emotional vulnerability, and distorted thinking, especially in younger users still developing financial habits and emotional regulation.

Common features that contribute to this behavior include:

• “Risk-Free” Bets: Misleading promotions that push high-stakes wagers under the false impression of safety.
• Live & Flash Betting: Encourages impulsive decisions in emotionally charged moments.
• Bonus Traps: Require multiple deposits or bets to unlock rewards, keeping users engaged longer.
• Gamification: Points, streaks, and badges simulate progress, even while losing money.
• Credit-Based Displays: Show balances in abstract “credits” instead of dollars to disconnect users from real losses.

These features are not accidental—they are engineered to make quitting difficult and to normalize frequent, high-volume betting.

How Betting Apps Target Problem Gamblers

Beyond promoting addictive behavior broadly, many sports betting platforms actively track and target individuals showing signs of gambling addiction. These are often the most profitable users, and rather than intervening, the apps double down to keep them engaged.

By analyzing user behavior such as frequent deposits, large wagers, or late-night activity, platforms build profiles to identify high-risk users. These users often receive:

• Push notifications after losses, urging them to try again
• Custom bonuses and reload offers, timed to re-engage
• Social media ads and in-app promos, tailored to recent betting activity
• VIP perks and loyalty tiers, reinforcing continued play despite financial harm

These targeted strategies go beyond general marketing, they are designed to retain users whose behavior clearly reflects distress, escalating the harm instead of offering support

How Universities Encouraged Student Gambling​

In recent years, several prominent universities entered into marketing partnerships with sports betting companies, granting these platforms direct access to student communities through co-branded emails, campus signage, social media promotions, and event sponsorships.

These arrangements often lacked adequate safeguards to prevent underage gambling or the use of student loans for betting, raising concerns about the normalization of gambling on college campuses.​

Caesars Sportsbook and Michigan State University Partnership

In January 2022, Michigan State University (MSU) announced a multi-year partnership with Caesars Sportsbook, designating it as the official sports betting and iGaming partner of MSU Athletics.

The agreement included naming rights for premium seating at Spartan Stadium, extensive signage at athletic events, and access to digital content across MSU sports properties. Caesars also committed to funding student scholarships and responsible gaming education initiatives.

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However, by May 2023, MSU terminated the partnership four years ahead of schedule amid growing concerns about the impact of sports betting on students. University officials cited shifting public perception and increased scrutiny over the ethics of promoting gambling within academic institutions as reasons for ending the deal. ​

Caesars Sportsbook and Louisiana State University Partnership

Louisiana State University (LSU) entered into a multi-year, seven-figure agreement with Caesars Sportsbook in September 2021, becoming the first Southeastern Conference school to partner with a gambling company.

The deal granted Caesars extensive marketing opportunities, including naming rights for the Caesars Sportsbook Skyline Club at Tiger Stadium, signage across various athletic venues, and exclusive presence on the LSU Sports Mobile App. ​

Despite initial commitments to responsible gaming, the partnership faced criticism for its potential influence on students, including those under the legal gambling age. In June 2023, LSU announced the termination of the agreement, aligning with new guidelines from the American Gaming Association that discourage such partnerships between universities and gambling entities. ​

PointsBet and University of Colorado Boulder Partnership

In September 2020, the University of Colorado Boulder (CU Boulder) established a five-year, $1.6 million partnership with PointsBet, marking one of the first major sports betting collaborations in college athletics.

The agreement included advertising at Folsom Field, integration into game broadcasts, and a controversial incentive program that paid the university $30 for each new user who signed up and placed a bet using a CU-specific promo code. ​

Facing mounting public backlash and evolving industry standards, CU Boulder and PointsBet mutually agreed to end the partnership in March 2023, three years ahead of schedule. The decision was influenced by updated guidelines from the American Gaming Association, which now prohibit partnerships between colleges and sportsbook operators.

The Financial Toll of Gambling Addiction Among Students

For college students and young adults, the financial impact of compulsive sports betting can be severe and long-lasting. With limited income, growing student debt, and little experience managing money, even small bets can quickly spiral into overwhelming financial pressure.

Unlike traditional gambling, sports betting apps link directly to bank accounts, credit cards, student loans, and digital wallets, making it dangerously easy to lose money that was never meant for gambling. What starts as casual betting often escalates into a cycle of debt, secrecy, and stress.

How Students Fall Into Gambling Debt

• Loan Disbursements Misused: Student loan refunds deposited into checking accounts are easily gambled away, often before covering essentials like rent or books.
• Credit Card Overload: Starter credit cards, once linked to apps, allow students to bet beyond their means, leading to maxed-out accounts and damaged credit.
• Parental Transfers Misused: Emergency money from family is frequently redirected toward chasing losses instead of covering food, bills, or transportation.
• Paycheck Drain: Apps connected to bank accounts can withdraw funds instantly, leaving students broke within hours of being paid.
• “Always-On” Betting Access: With digital banking, PayPal, and Apple Pay, students can place bets anytime, often impulsively and repeatedly, without oversight.

Allegations Raised in Sports Betting Class Action Lawsuits

Lawsuits are being filed against major gambling platforms like DraftKings, FanDuel, and others for exploiting vulnerable users through deceptive marketing, predatory app design, and targeted behavior tracking. These lawsuits allege that the companies:

• Engaged in deceptive promotions by advertising “risk-free” bets and deposit matches that were not truly without financial risk.
• Intentionally targeted problem gamblers, including individuals on self-exclusion lists or those who had previously requested account closures due to addiction.
• Failed to warn users about the true risks and financial exposure associated with their platforms and promotions.
• Designed apps to foster addiction, using reward loops, hidden terms, and gamified interfaces that exploit psychological vulnerabilities, particularly among young men.
• Used data analytics and VIP outreach to identify and retain high-value users, often those showing signs of addiction.
• Enabled universities and affiliates to promote betting to underage and student populations without adequate safeguards.

Sports Betting Lawsuit Settlements

Sports betting addiction lawsuits are seeking compensation for a range of financial and emotional harms suffered as a result of compulsive gambling behavior encouraged by these platforms. Potential compensation may include:

• Reimbursement of gambling-related losses, including student loan or credit card funds used for bets
• Repayment of deposits made under deceptive promotional terms
• Coverage for mental health treatment related to addiction and financial distress
• Damages for emotional suffering, including anxiety, depression, or family strain linked to gambling losses
• Academic or professional consequences, such as failing classes, dropping out of school, or lost job opportunities
• Punitive damages, particularly in cases where platforms knowingly targeted addicted users or those on self-exclusion lists

These lawsuits aim not only to recover financial losses but also to hold gambling companies accountable for the long-term impacts of their business practices.

Sports Betting Lawsuit Examples

DraftKings Lawsuit Alleges Addictive Design and Predatory Targeting of Vulnerable Users

Gregory P. Hatz filed a DraftKings lawsuit in the U.S. District Court for the Eastern District of Pennsylvania on April 18, 2025, claiming that the company used deceptive and predatory practices to encourage compulsive gambling and exploit users struggling with addiction.

The complaint (PDF) alleges that DraftKings promoted “no sweat” bets and “risk-free” bonuses that were not truly risk-free, misled users with complex or hidden terms, and designed its app to encourage repeated betting through psychological triggers like gamification and flash betting. Hatz further claims that the platform failed to implement adequate safeguards to prevent addiction, despite tracking user behavior and recognizing signs of problematic betting.

The lawsuit also accuses DraftKings of deliberately targeting problem gamblers through data profiling, personalized promotions, and “VIP” incentives, even allowing users who had previously self-excluded or requested account closures to return to the platform. According to the complaint, these practices were not accidental, but part of a broader business strategy to identify and retain the most financially vulnerable users.

DraftKings Lawsuit Alleges $200,000 in Losses from VIP Program Targeting Gambling Addiction

Dr. Kavita Fischer filed a lawsuit against DraftKings, Inc. in the U.S. District Court for the Southern District of New York on February 12, 2025, alleging that the company knowingly exploited her gambling addiction through its VIP program.

According to the complaint (PDF), DraftKings upgraded her to VIP status despite clear signs of compulsive behavior, including frequent, escalating deposits and direct communications acknowledging her addiction. The lawsuit claims that DraftKings tracked her gambling data, knew her behavior was harmful, and continued to provide incentives, bonuses, and personalized outreach that encouraged her to keep betting, often far beyond her financial means.

Rather than intervening, DraftKings allegedly used this data to intensify its marketing, sending Fischer casino credits, promotions, and luxury perks even after she self-excluded from the platform. The lawsuit details more than $200,000 in losses over a short period, along with severe emotional and financial distress. Legal claims include negligence, intentional infliction of emotional distress, and exploitation of a known addiction for corporate gain. Fischer’s complaint argues that DraftKings’ VIP outreach was not passive, but part of an intentional system designed to profit from vulnerable users.

How to File a Sports Betting Lawsuit

If you or a loved one developed a gambling addiction after using sports betting apps like DraftKings, FanDuel, Caesars, or others, you may be entitled to financial compensation. Lawsuits are now being reviewed nationwide for individuals who suffered substantial losses and emotional distress due to deceptive and addictive design practices used by these platforms.

Filing a sports betting lawsuit is confidential, risk-free, and handled entirely by experienced attorneys. There are no out-of-pocket costs, and no fees unless compensation is recovered.

Information Needed to Start a Sports Betting Lawsuit

• The name(s) of the betting apps you used
• Your age at the time you opened the account(s)
• An estimate of total gambling losses (usually $10,000 or more)

While bank statements and other transactional information will ultimately be needed, you will not be asked to submit any sensitive documents online. All records will be reviewed confidentially with a licensed attorney during your free, no-obligation case evaluation.

Lawyers are providing free case evaluations to determine whether you qualify for an individual lawsuit or to join a potential class action. If your claim is accepted, your attorney will handle every step, from gathering documentation to negotiating a settlement or preparing for trial.